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Dick Smith stores to close

Business

Electronics retailer Dick Smith will close its 363 Australian and New Zealand stores within eight weeks, putting 2,890 staff out of a job.

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Receiver Ferrier Hodgson said it had not managed to find a buyer for the troubled retailer, which went into receivership in January with debts of about $400 million.

“While we received a significant number of expressions of interest from local and overseas parties, unfortunately the sale process has not resulted in any acceptable offers for the group as a whole or for Australia or New Zealand as standalone businesses,” receiver James Stewart said.

“The offers were either significantly below liquidation values or highly conditional or both.”

The company was put into voluntary administration in January.

The retailer first warned in October that full year profit could fall as much as 15 per cent to between $37 million and $43 million, as it stepped up discounting and advertising to restore sales growth.

However, the sales slump continued into November, resulting in the company having to dump its profit forecast a few weeks later.

The retailer was forced to launch a firesale in early December to clear unwanted stock that cost it about $60 million in writedowns.

more to come

AAP

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